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FinecoBank

Earnings Release Aug 2, 2022

4321_10-q_2022-08-02_60102871-97f1-47de-8ccc-7efc9f55141d.pdf

Earnings Release

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Informazione
Regolamentata n.
1615-51-2022
Data/Ora Ricezione
02 Agosto 2022
12:51:38
Euronext Milan
Societa' : FINECOBANK
Identificativo
Informazione
Regolamentata
: 165682
Nome utilizzatore : FINECOBANKN02 - Spolini
Tipologia : 1.2
Data/Ora Ricezione : 02 Agosto 2022 12:51:38
Data/Ora Inizio
Diffusione presunta
: 02 Agosto 2022 12:51:41
Oggetto : PR_FINECOBANK 1H22 RESULTS
Testo del comunicato

Vedi allegato.

Results at June 30 th , 2022 approved

SOLID GROWTH IN RESULTS ALSO IN THE NEW SCENARIO THANKS TO A DIVERSIFIED AND SUSTAINABLE BUSINESS MODEL

  • Strong growth in net profit: €222.5 million (+20.5% y/y1 )
  • Total revenues: €464.3 million (+15.1% y/y1 )
    • Cost/income ratio: 29.3%
    • Solid Capital Position: CET1 at 19.14%
  • Approved the commitment to achieve Net-Zero emissions by 2050

Milan, August 2nd, 2022

The Board of Directors of FinecoBank S.p.A. has approved the results as of June 30 th , 2022. Alessandro Foti, CEO and General Manager of FinecoBank, stated:

"We're extremely satisfied with the results of the first six months of the year, which confirm the effectiveness of a diversified and sustainable business model, able to record solid results even in a challenging scenario. The new context, characterized by significant changes, represents for Fineco a boost to grow in all its business areas: from banking, which takes advantage of an increase in the net interest income, to investing, thanks to Fineco AM's contribution, and brokerage, confirming a structurally higher floor compared to pre-pandemic level. In addition, the ability to integrate all services in an unique advanced platform allows a stable and healthy business development confirming an improvement both in investments on our growth and in future dividends, together with a constant commitment in sustainability".

1 Figures net of non-recurring items recorded in the first half of 2022: €-0.3 million gross (€-0.2 million net) valuation related to the Voluntary Scheme fair value and write-off in 1Q22

Figures net of non-recurring items recorded in the first half of 2021: Tax benefit arising from the tax realignment of goodwill carried out by FinecoBank, as provided for in Article 110 of Legislative Decree 104 of 2020, in the amount of €+32 million net in 2Q21

FINECOBANK
Revenues1 at €464.3 million, +15.1% y/y led by the Investing area (+22.0% y/y),

thanks to the growing contribution of Fineco Asset Management, to the increase of
Asset under Management, and to the increase in Investing net margins, and by the
positive contribution of the Net Financial Income (+19.3% y/y)
Operating costs at €136.0 million, +7.9% y/y (+3.0% y/y2 net of costs strictly related

to the growth of the business). Cost/Income ratio1 at 29.3%, confirming the Bank's
operational efficiency
Net profit1 at €222.5 million, up +20.5% y/y compared to the same period of 2021
1H22
HIGHLIGHTS
TFA at €102.8 billion, +1.4% y/y thanks to the contribution of net sales equal to €5.6

billion, which confirmed the soundness of the Bank's growth even in a particularly
complex market phase. Net sales in Asset Under Management stood at €1.7 billion
Fineco Asset Management reaches €24.5 billion of TFA, of which €14.6 billion in

retail classes (+10.7% y/y), and €9.9 billion in funds underlyings of wrappers
(institutional classes, +39.6% y/y). FAM is proceeding with the activities related to its
strategic discontinuity, which will allow it to take more control of the value chain
48,001 new customers acquired in the first half of 2022, bringing the total to

1,454,645
Fineco Asset Management is experiencing a strong acceleration in the expansion of

its offer of investment solutions. After the introduction of the passive investment
solutions, Fineco Asset Management has launched a new version of the ESG Target
Global Coupon and within the third quarter of 2022 it will launch its offer of ETFs.
UPDATE ON
INITIATIVES
Fineco is further improving its platform and the quality of its offer thanks to an

easier user experience through all the product area with new interfaces. Moreover,
a simplified current account only dedicated to brokerage will be developed, with a
dedicated pricing and a quicker on-boarding process.
Fineco keeps on developing its presence abroad, which will be developed based on

the new platform, highly scalable and multilanguage.
FinecoBank Board of Directors approved the commitment to achieve a status of

Net-Zero emissions by 2050 regarding both operational and financed emissions.

2FAM (-4.2 mln y/y) and marketing expenses (-1.9 mln y/y).

TOTAL FINANCIAL ASSETS AND NET SALES

Total Financial Assets as of June 30 th , 2022 amounted to €102.8 billion, up 1.4% compared to June2021. Stock of Assets under Management was €50.8 billion, slightly decreasing (-1.2% y/y) due to the market correction since the beginning of the year, assets under custody amounted to €21.5 billion (-1.2% y/y), while the stock of direct deposits amounted to €30.5 billion (+7.9% y/y).

In particular, the TFA related to Private Banking customers, i.e. with assets above €500,000, totalled €43.3 billion.

In the first half of 2022, total net sales amounted to €5.6 billion, in line with the same period of 2021, and again proving to be solid even in a particularly complex market phase. Asset under management net sales amounted to €1.7 billion. Assets under custody amounted to €2.9 billion, while direct deposits were equal to €1.0 billion.

Since the start of the year, inflows into "Guided products & services" reached €1.6 billion, confirming customer appreciation. The ratio of Guided Products on total AuM rose to 76% compared to 75% in June 2021.

As of June 30 th , 2022, the network was composed of 2,887 Personal Financial Advisors operating through 423 Fineco Centers. Inflows through the PFA network were equal to €4.9 billion in the first half of 2022.

As of June 30 th , 2022, Fineco Asset Management managed €24.5 billion of assets, of which €14.6 billion were retail class (+10.7% y/y) and around €9.9 billion institutional class (+39.6% y/y).

A total of 48,001 new customers were acquired in the first half of 2022. The total number of customers as of June 30 th , 2022 was 1,454,645.

MAIN INCOME STATEMENT RESULTS AT 30.06.22

Figures and variations in this paragraph and in the next one on quarterly results are shown net of nonrecurring items1 .

1Q21 2Q21 1Q22 2Q22 1H21 1H22 1H22/ 2Q22/ 2Q22/
mln Adj. (1) Adj. (1) Adj. (1) Adj. (1) Adj. (1) Adj. (1) 1H21 2Q21 1Q22
Net financial income 75.1 72.8 107.5 68.9 147.9 176.4 19.3% -5.3% -35.8%
o/w Net interest income 61.8 62.5 59.3 67.6 124.3 127.0 2.1% 8.2% 13.9%
o/w Profit from treasury 13.2 10.3 48.1 1.3 23.6 49.4 109.9% -87.1% -97.2%
Dividends 0.0 0.0 0.0 -0.1 0.0 -0.1 n.s. n.s. 126.9%
Net commissions 108.1 106.3 118.6 113.9 214.3 232.5 8.5% 7.2% -4.0%
Trading profit 23.9 16.7 29.2 25.9 40.6 55.1 35.8% 55.1% -11.6%
Other expenses/income 0.5 0.1 0.4 0.1 0.6 0.4 -36.1% -61.2% -86.1%
Total revenues 207.6 195.9 255.7 208.6 403.5 464.3 15.1% 6.5% -18.4%
Staff expenses -26.2 -26.7 -28.3 -29.2 -52.9 -57.5 8.8% 9.5% 3.0%
Other admin.expenses -30.6 -29.9 -34.0 -31.3 -60.6 -65.3 7.8% 4.4% -8.1%
D&A -6.3 -6.4 -6.6 -6.6 -12.7 -13.2 4.2% 3.4% 0.1%
Operating expenses -63.1 -63.0 -69.0 -67.1 -126.1 -136.0 7.9% 6.4% -2.8%
Gross operating profit 144.5 132.9 186.7 141.6 277.4 328.3 18.4% 6.5% -24.2%
Provisions -8.2 -5.8 -10.2 -2.3 -14.0 -12.5 -10.9% -61.0% -77.9%
LLP -0.5 -1.2 -0.8 -0.4 -1.7 -1.2 -27.4% -65.0% -47.0%
Profit from investments -0.6 1.8 -0.6 -0.2 1.2 -0.8 n.s. n.s. -63.5%
Profit before taxes 135.2 127.7 175.1 138.7 262.9 313.8 19.4% 8.6% -20.8%
Income taxes -40.4 -37.8 -51.5 -39.8 -78.2 -91.3 16.6% 5.2% -22.7%
Net profit adjusted (1) 94.7 89.9 123.6 98.9 184.6 222.5 20.5% 10.0% -20.0%

Revenues totalled €464.3 million in the first half of 2022, increasing by 15.1% compared to €403.5 million of the previous year.

Net Financial Income stood at €176.4 million, up by 19.3% compared to the same period of 2021 thanks to both Net Interest Income and profits from Treasury Management.

Net commissions amounted to €232.5 million, increasing by 8.5% compared to €214.3 million in the first half of 2021.

This increase is mainly due to the higher net commissions related to the Investing area (+22.2% y/y) thanks to the volume effect and the higher contribution of Fineco Asset Management. Banking fees grew at €26.9 million (+18.6% y/y), while Brokerage net commissions stood at € 56.9 million (compared to €69.7 million in the same period of 2021, due to a different market environment in terms of volumes and volatility).

Trading profit amounted to €55.1 million.

Operating costs in the first half of 2022 were well under control at €136.0 million, up 7.9% y/y mainly due for expenses strictly connected to the growth of the business2 , net of which the increase in operating costs is equal to 3.0% y/y.

Staff expenses totalled €57.5 million, increasing by 8.8% mainly due to the increase in the number of employees, which rose from 1,280 as of June 30 th , 2021 to 1,316 as of June 30 th , 2022 due to the growth of the business in Italy and to the Irish subsidiary Fineco Asset Management, which is preparing to further improve the efficiency of the value chain in the Investing area.

The cost/income ratio net of non-recurring items1 was 29.3%.

Gross operating profit amounted to €328.3 million as of June 30 th , 2022, up by 18.4% y/y.

Other charges and provisions totaled €-12.5 million, mainly due to the contribution to the Single Resolution Fund (€-7.6 million).

Loan loss provisions amounted to €-1.2 million. The cost of risk is equal to 2 basis points.

Profit on Investments amounted to €-0.8 million.

Profit before taxes stood at €313.8 million, up by 19.4% y/y compared to €262.9 million in the first half of 2021.

Net profit for the period was equal to €222.5 million, increasing by 20.5% y/y.

MAIN INCOME STATEMENT RESULTS FOR THE SECOND QUARTER 2022

Revenues in the second quarter totalled €208.6 million, down compared to the previous quarter (-18.4%) and up compared to the same quarter of 2021 (+6.5%).

Net Financial Income stood at €68.9 million, down by 35.8% q/q and by 5.3% y/y due to lower profits from Treasury Management.

Net commissions amounted to €113.9 million, down by €4.8 million compared to the previous quarter due to lower Brokerage commissions due to the higher market volatility in the first months of the year. Net commissions are increasing by 7.2% compared to the second quarter of 2021, mainly due mainly due to higher Investing commissions (€75.8 million, +3.1% q/q and +16.5% y/y).

Trading profit equalled to €25.9 million, down compared to €29.2 million of the previous quarter and higher compared to €16.7 million in the second quarter of 2021.

Total operating costs came to €67.1 million, down by 2.8% q/q and up by 6.4% y/y.

Gross operating profit was equal to €141.6 million, down by 24.2% q/q and increasing by 6.5% y/y.

Other charges and provisions amounted to €-2.3 million.

Loan loss provisions amounted to €-0.4 million.

Profits from investments stood at €-0.2 million.

Profit before taxes in the quarter was equal to €138.7 million, down by 20.8% q/q and up by 8.6% y/y.

Net profit in the quarter was equal to €98.9 million, up by 20.0% q/q and by 10.0% y/y.

SHAREHOLDERS' EQUITY AND CAPITAL RATIOS

Consolidated Shareholders' equity stood at €1,709.3 million, decreasing by €17.5 million compared to December 31st, 2021, mainly due to the amount of the 2021 dividends payment (€237.9 million) and of the AT1 coupon paid in the period (which resulted in a decrease in shareholders' equity of €9.9 million), partially offset by the net profit in the period (equal to €222.4 million) and by the increase of Revaluation reserves and Reserve IFRS 2".

The Group confirms its solid capital position with a CET1 ratio of 19.14% as of June 30 th , 2022, compared to 19.31% as of March 31 st , 2022 and to 18.80% as of December 31st , 2021.

The Tier 1 ratio and the Total Capital Ratio were equal to 29.45% as of June 30 th , 2022 compared to 29.99% as of March 31 st, 2022 and to 29.63% as of December 31st , 2021.

Leverage ratio stood at 3.82% as of June 30 th , 2022 compared to 3.80% in March 31 st , 2022 3 and to 3.84% as of December 31st , 2021.

LOANS TO CUSTOMERS

Loans to customers stood at €6,310.8 million as of June 30 th , 2022, increasing by 19.8% compared to June 30th , 2021 and by 5.2% compared to December 31 st, 2021.

The amount of non-performing loans (loans with insolvent borrowers, unlikely to pay and non-performing loans/past due) net of impairment totaled €4.3 million (€4.5 million as of June 30th, 2021 and €4.4 million as of December 31st, 2021), with an 82.6% coverage ratio. The ratio between the amount of nonperforming loans and total loans to ordinary customers equaled to 0.07% (0.10% at June 30th, 2020 and 0.08% December 31st, 2021).

SIGNIFICANT EVENTS IN THE SECOND QUARTER OF 2022 AND SUBSEQUENT EVENTS

With reference to the main events that took place in the second quarter of 2022, please refer to the press releases published on the FinecoBank website.

No significant events occurred after June 30th , 2022 that would make it necessary to change any of the information given in this report.

NEW INITIATIVES MONITORING

Fineco Asset Management is experiencing a strong acceleration in the expansion of its offer of investment solutions. After the introduction of the passive investment solutions, Fineco Asset Management has launched a new version of the ESG Target Global Coupon and within the third quarter of 2022 it will launch its offer of ETFs.

Fineco is further improving its platform and the quality of its offer thanks to an easier user experience through all the product area with new interfaces. Moreover, a simplified current account only dedicated to brokerage will be developed, with a dedicated pricing and a quicker on-boarding process.

3 Leverage Ratio including the exposure towards Central Banks. Leverage Ratio calculated by excluding the exposures towards Central Banks, which was allowed until April 1st, 2022 according to art. 429a - CRR, was equal to 3.99% as of March 31st, 2022 and to 4.02% as of December 31st, 2021.

Fineco keeps on developing its presence abroad, which will be developed based on the new platform, highly scalable and multilanguage.

SUSTAINABILITY

In the first half of 2022, Fineco continued its path of Sustainability in the various areas outlined in the ESG Plan 2020-2023.

In particular, Fineco AM updated its Responsible Investment Policy, which describes the policies for responsible screening and selection of funds, and monitoring of the portfolio's ESG rating. In addition, the Group's asset management company has kept the SFDR categorisation of its funds up-to-date and, at the end of June 2022, around 35% of Fineco AM's funds promote, among other characteristics, environmental or social characteristics, or a combination of these, or have a sustainable investment objective. At Group level, as of the same date, 58% of the funds offered had the same characteristics.

In the context of the external initiatives to which the Group adheres, since March 2022 Fineco AM has subscribed to the 10 Principles of the UN Global Compact, deciding to align its strategies and activities with the universal principles on human rights, labour, environment and anti-corruption. Furthermore, in order to follow up on the commitments deriving from the signing of the Principles for Responsible Banking, in June 2022 FinecoBank published its first "Reporting and Self-Assessment" document, i.e. a high-level response on how the Bank is implementing its underlying commitments by formulating a summary self-assessment on the fulfilment of its objectives.

In the area of environmental impact management, in the first half of 2022, maintenance activities continued on the Environmental Management System, which, at the end of June 2022, was being assessed by the Ecolabel and Ecoaudit Committee - EMAS Italy Section - for the purpose of obtaining EMAS Registration. Furthermore, in August, the Board of Directors approved the commitment to achieve a status of Net-Zero emissions by 2050 regarding both operational and financed emissions. Through this objective, the Group commits to reduce its Scope 1 and 2 operational emissions by 35% and its Scope 3 operational emissions by 20% by 2030, achieving a 90% reduction in these emissions by 2050, with the residual emissions being neutralised from the Net-Zero year. The Group is also committed to ensuring that its assets are aligned with the climate objectives of the Paris Agreement, with particular reference to government and bank debt securities, which make up more than 70% of consolidated assets at the end of 2021.

With regard to social aspects, at the beginning of 2022 Fineco AM financed the AIxGirls project, i.e. a free weekly campus dedicated to girls finishing the fourth year of high school to encourage their enrolment in degree courses in technological disciplines. The initiative represents the first example in Italy.

In the area of responsible finance, for the first time the Bank negotiated a collateral switch transaction (collateralised securities lending) with ESG criteria. Compared to traditional transactions, the transaction envisages the payment of an extra fee related to Fineco's achievement of the following sustainability targets: (i) 100% of new ESG-rated funds placed on the Italian platform between 31 December 2021 and 31 December 2023 (ii) S&P Corporate Sustainability Assessment score greater than 67 out of 100. When the transaction expires, set for April 2024, the extra fee will be paid to Fineco by the counterparty and retroceded by Fineco to Save the Children if the Bank reaches the agreed targets, while it will be retroceded directly by the counterparty to Save the Children if Fineco does not reach the targets.

The feedback from ESG rating agencies continues to be positive. In fact, in the first half of 2022 there was an improvement in the ESG risk rating assigned by Sustainalytics, taking it from 16.0 (Low risk) at the end of

2021 to 15.8 (Low risk) in May 2022 and confirming Fineco's position among the best banks internationally. Furthermore, the following ESG ratings were substantially confirmed: (i) MSCI, equal to "A", a rating in line with the average of the "diversified financials" sector; (ii) S&P through the Corporate Sustainability Assessment, with a score of 65 points out of 100; (ii) Vigeo Eiris (Moody's ESG solutions) with an ESG assessment equal to 54 points out of 100 (robust performance); and (iii) Refinitiv, with a score of 85 out of 100, indicating excellent ESG performance and a high degree of transparency in public sustainability reporting.

At the end of June 2022, the Bank was also included in Euronext's MIB ESG Index, FTSE4Good, Bloomberg Gender Equality Index (GEI) 2022, Standard Ethics Italian Banks Index, Standard Ethics Italian Index, Nasdaq CRD Global Sustainability Index and S&P Global 1200 ESG index.

The reclassified consolidated balance sheet and the reclassified income statement approved by the Board of Directors are attached here below.

CONDENSED BALANCE SHEET

(Amounts in € thousand)

Amounts as at Changes
ASSETS June 30, 2022 December 31, 2021 Amounts %
Cash and cash balances 1,542,372 1,464,182 78,190 5.3%
Financial assets held for trading 20,020 20,240 (220) -1.1%
Loans and receivables with banks 400,215 379,862 20,353 5.4%
Loans and receivables with customers 6,310,789 6,001,596 309,193 5.2%
Financial investments 25,294,566 24,560,350 734,216 3.0%
Hedging instruments 948,764 125,913 822,851 n.a.
Property, plant and equipment 146,686 150,347 (3,661) -2.4%
Goodwill 89,602 89,602 - n.a.
Other intangible assets 37,525 39,084 (1,559) -4.0%
Tax assets 44,681 42,974 1,707 4.0%
Tax credit acquired 827,217 508,764 318,453 62.6%
Other assets 415,278 484,261 (68,983) -14.2%
Total assets 36,077,715 33,867,175 2,210,540 6.5%

(Amounts in € thousand)

Amounts as at Changes
LIABILITIES AND SHAREHOLDERS' EQUITY June 30, 2022 December 31, 2021 Amounts %
Deposits from banks 2,333,322 1,225,213 1,108,109 90.4%
Deposits from customers 30,827,605 29,847,722 979,883 3.3%
Debt securities in issue 498,833 497,266 1,567 0.3%
Financial liabilities held for trading 7,104 4,417 2,687 60.8%
Hedging instruments 2,581 65,263 (62,682) -96.0%
Tax liabilities 118,430 35,864 82,566 230.2%
Other liabilities 580,560 464,633 115,927 25.0%
Shareholders' equity 1,709,280 1,726,797 (17,517) -1.0%
- capital and reserves 1,487,091 1,351,963 135,128 10.0%
- revaluation reserves (174) (5,877) 5,703 -97.0%
- net profit 222,363 380,711 (158,348) -41.6%
Total liabilities and Shareholders' equity 36,077,715 33,867,175 2,210,540 6.5%

CONDENSED BALANCE SHEET – QUARTERLY FIGURES

(Amounts in € thousand)
June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021
ASSETS
Cash and cash balances 1,542,372 1,752,145 1,464,182 2,031,291 1,861,776
Financial assets held for trading 20,020 20,123 20,240 23,589 21,393
Loans and receivables with banks 400,215 380,873 379,862 397,493 392,272
Loans and receivables with customers 6,310,789 6,088,369 6,001,596 5,624,283 5,269,368
Financial investments 25,294,566 25,368,592 24,560,350 24,421,922 24,626,581
Hedging instruments 948,764 465,840 125,913 91,929 85,051
Property, plant and equipment 146,686 148,424 150,347 151,866 153,030
Goodwill 89,602 89,602 89,602 89,602 89,602
Other intangible assets 37,525 38,264 39,084 37,270 38,189
Tax assets 44,681 44,355 42,974 49,405 38,323
Tax credit acquired 827,217 601,178 508,764 393,970 75,065
Other assets 415,278 401,015 484,261 221,546 254,110
Total assets 36,077,715 35,398,780 33,867,175 33,534,166 32,904,760
(Amounts in € thousand)
June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 June 30, 2021
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits from banks 2,333,322 1,808,045 1,225,213 1,168,612 1,172,802
Deposits from customers 30,827,605 30,735,609 29,847,722 29,804,975 29,141,477
Debt securities in issue 498,833 498,045 497,266 - -
Financial liabilities held for trading 7,104 9,666 4,417 6,234 4,937
Hedging instruments 2,581 (754) 65,263 90,522 118,586
Tax liabilities 118,430 89,277 35,864 73,768 35,666
Other liabilities 580,560 404,164 464,633 420,583 534,610
Shareholders' equity 1,709,280 1,854,728 1,726,797 1,969,472 1,896,682
- capital and reserves 1,487,091 1,733,365 1,351,963 1,683,389 1,681,875
- revaluation reserves (174) (2,097) (5,877) (3,175) (1,863)
- net profit 222,363 123,460 380,711 289,258 216,670
Total liabilities and Shareholders' equity 36,077,715 35,398,780 33,867,175 33,534,166 32,904,760

CONDENSED INCOME STATEMENT

1H 22 1H 21 Changes
Amounts %
Financial margin 176,407 147,897 28,510 19.3%
of which Net interest 126,961 124,338 2,623 2.1%
of which Profits from Treasury 49,446 23,559 25,887 109.9%
Dividends and other income from equity investments (148) - (148) n.a.
Net fee and commission income 232,514 214,346 18,168 8.5%
Net trading, hedging and fair value income 54,843 40,571 14,272 35.2%
Net other expenses/income 416 644 (228) -35.4%
REVENUES 464,032 403,458 60,574 15.0%
Staff expenses (57,538) (52,884) (4,654) 8.8%
Other administrative expenses (134,364) (128,028) (6,336) 4.9%
Recovery of expenses 69,063 67,470 1,593 2.4%
Impairment/write-backs on intangible and tangible assets (13,191) (12,662) (529) 4.2%
Operating costs (136,030) (126,104) (9,926) 7.9%
OPERATING PROFIT (LOSS) 328,002 277,354 50,648 18.3%
Net impairment losses on loans and provisions for guarantees and commitments (1,225) (1,688) 463 -27.4%
NET OPERATING PROFIT (LOSS) 326,777 275,666 51,111 18.5%
Other charges and provisions (12,498) (14,023) 1,525 -10.9%
Net income from investments (754) 1,239 (1,993) -160.9%
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 313,525 262,882 50,643 19.3%
Income tax for the period (91,162) (46,212) (44,950) 97.3%
NET PROFIT (LOSS) AFTER TAX FROM CONTINUING OPERATIONS 222,363 216,670 5,693 2.6%
PROFIT (LOSS) FOR THE PERIOD 222,363 216,670 5,693 2.6%

CONDENSED INCOME STATEMENT – QUARTERLY FIGURES

(Amounts in € thousand)
Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter
2021 2021 2021 2021 2021 2022 2022
Financial margin 280,030 75,071 72,826 69,239 62,894 107,461 68,946
of which Net interest 247,889 61,823 62,515 61,798 61,753 59,347 67,614
of which Profits from Treasury 32,141 13,248 10,311 7,441 1,141 48,114 1,332
Dividends and other income from equity investments (26) - - - (26) (45) (103)
Net fee and commission income 450,808 108,080 106,266 110,083 126,379 118,637 113,877
Net trading, hedging and fair value income 74,308 23,888 16,683 15,614 18,123 28,989 25,854
Net other expenses/income (1,310) 512 132 (1,457) (497) 365 51
REVENUES 803,810 207,551 195,907 193,479 206,873 255,407 208,625
Staff expenses (109,600) (26,217) (26,667) (27,369) (29,347) (28,348) (29,190)
Other administrative expenses (262,546) (62,979) (65,049) (63,396) (71,122) (69,366) (64,998)
Recovery of expenses 139,471 32,367 35,103 35,751 36,250 35,335 33,728
Impairment/write-backs on intangible and tangible assets (26,218) (6,275) (6,387) (6,437) (7,119) (6,590) (6,601)
Operating costs (258,893) (63,104) (63,000) (61,451) (71,338) (68,969) (67,061)
OPERATING PROFIT (LOSS) 544,917 144,447 132,907 132,028 135,535 186,438 141,564
Net impairment losses on loans and provisions for guarantees and commitments (1,655) (477) (1,211) (360) 393 (801) (424)
NET OPERATING PROFIT (LOSS) 543,262 143,970 131,696 131,668 135,928 185,637 141,140
Other charges and provisions (49,938) (8,236) (5,787) (31,058) (4,857) (10,239) (2,259)
Net income from investments 1,079 (583) 1,822 280 (440) (553) (201)
PROFIT (LOSS) BEFORE TAX FROM CONTINUING OPERATIONS 494,403 135,151 127,731 100,890 130,631 174,845 138,680
Income tax for the period (113,692) (40,407) (5,805) (28,302) (39,178) (51,385) (39,777)
PROFIT (LOSS) FOR THE PERIOD 380,711 94,744 121,926 72,588 91,453 123,460 98,903
NET PROFIT (LOSS) ATTRIBUTABLE TO THE GROUP 380,711 94,744 121,926 72,588 91,453 123,460 98,903

FINECOBANK RATING

Long term debt Short term debt Outlook
S&P GLOBAL RATING BBB A-2 Stable

TOTAL NET SALES PER AREA AS OF JUNE 30TH, 2022 (IN THOUSANDS €)

Area Total Net Sales
1H22
Total Net Sales
1H21
AuM Net Sales
1H22
AuM Net Sales
1H21
Lombardia 1,738,122 1,903,486 491,581 1,255,792
Lazio 620,168 589,609 175,603 443,501
Veneto 496,042 469,203 190,858 346,969
Emilia Romagna 427,980 426,411 111,926 294,062
Toscana 411,949 451,811 183,416 339,671
Piemonte 408,123 368,565 100,659 310,119
Campania 264,951 328,188 64,565 202,538
Marche 198,185 155,481 96,874 110,033
Sicilia 168,541 180,528 34,546 149,467
Liguria 164,324 230,316 41,290 145,245
Other 551,074 527,866 188,684 390,825
Total 5,636,194 5,786,886 1,701,696 4,047,209

DISCLAIMER

This Press Release may contain written and oral "forward-looking statements", which includes, all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, objectives, estimates, forecasts, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of FinecoBank S.p.A. (the "Company"). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forwardlooking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Press Release are provided as at the present date and are subject to change without notice. Neither this Press Release nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision.

The information, statements and opinions contained in this Press Release are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an

offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments.

None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the "Other Countries"), and there will be no public offer of any such securities in the United States or in the Other Countries. This Press Release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries.

Neither the Company nor any of its representatives shall accept any liability whatsoever arising in any way in relation to information contained herein or in relation to any loss arising from its use or otherwise arising in connection with this Press Release.

By accessing to the contents of this Press Release, you agree to be bound by the foregoing limitations.

Declaration of the Nominated Official in charge of drawing up company accounts

The undersigned Lorena Pelliciari, as Nominated Official in charge of drawing up Company Accounts of FinecoBank S.p.A.,

DECLARES

in compliance with the provisions of the second paragraph of Article 154-bis of the "Consolidated Finance Act", that the accounting information contained in this press release corresponds to results in the Company accounts, books and records.

Milan, 02 August 2022

The Nominated Official in charge of drawing up company accounts

FinecoBank

FinecoBank is one of the most important FinTech banks in Europe. Listed on the FTSE MIB, Fineco offers a business model that is unique in Europe, combining the best platforms with a large network of financial advisors. It offers a single account with banking, trading and investment services, on transactional and advisory platforms developed with proprietary technologies. Fineco is a leading bank in brokerage in

Europe, and one of the most important players in Private Banking in Italy, offering advanced and tailormade advisory services. Since 2017, FinecoBank has also been in the UK with an offer focused on brokerage, banking and investment services. Fineco Asset Management was founded in Dublin in 2018, with a mission to develop investment solutions in partnership with top international asset managers

Enquiries Fineco - Media Relations Fineco - Investor Relations Tel.: +39 02 2887 2256 Tel. +39 02 2887 3736/2358 [email protected]om [email protected]

Barabino & Partners Tel. +39 02 72023535 Emma Ascani [email protected] +39 335 390 334

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